North Carolina House Approves 5% Public Funds in Cryptocurrencies
1min read The North Carolina House of Representatives has passed a significant piece of legislation that allows the state’s treasurer to invest a portion of public funds in approved cryptocurrencies. The Digital Assets Investment Act, known as House Bill 92, was approved on April 30 with a vote of 71 to 44 and is now moving to the state Senate for further consideration. Introduced in February by Republican House Speaker Destin Hall, the bill authorizes the treasurer to allocate up to 5% of the state’s total investments into designated digital assets. This move positions North Carolina as one of the few states actively integrating digital assets into public financial management.
However, any such investment would require an independent third-party assessment to ensure that custody, risk management, and regulatory compliance standards are met. In a new amendment to the bill, the treasurer is also permitted to evaluate whether members of public retirement and deferred compensation plans could opt into digital asset investments through exchange-traded products (ETPs). This amendment highlights the state's commitment to ensuring that any investments in cryptocurrencies are made with the utmost care and oversight.
In a related move, the House also passed the State Investment Modernization Act, or House Bill 506, with a near-unanimous 110 to 3 vote. This bill proposes the establishment of the North Carolina Investment Authority (NCIA), which would assume control of investment decisions from the state treasurer. If enacted, the NCIA—not the treasurer—would have the authority to invest in cryptocurrencies, contingent on board approval and third-party validation. North Carolina Treasurer Brad Briner has expressed support for both bills, indicating a strong backing from the state's financial leadership.
The state is now positioning itself alongside Arizona in advancing crypto-related public investment frameworks. Arizona’s legislature recently passed two crypto reserve bills, SB 1025 and SB 1373, which now await Governor Katie Hobbs’ decision. If approved, North Carolina would become one of the few states actively integrating digital assets into public financial management. The adoption of Bitcoin has found notable momentum statewide in the U.S., with 47 Bitcoin reserve bills introduced across 26 states, and 41 currently active. Just recently, Kentucky Governor Andy Beshear officially signed House Bill 701, known as the “Bitcoin Rights” bill, into law—making the state one of the latest to enact legislation protecting digital asset users and operations.
